Next up for Yellen's nomination: A confirmation vote, set for Jan. 6. With the Democratic caucus controlling 55 of the Senate's 100 seats, she's expected to get a majority and then become the first woman to head the central bank.

The Fed's thinking: The economy, which sank into recession in late 2007 and spent the better part of the next 5 years or so either in decline or only growing weakly, has regained some of its strength. That impression was reinforced Friday when the Bureau of Economic Analysis said gross domestic product expanded at a healthy 4.1 percent annual rate in the third quarter.